FWIW, I've had no crashes like that. I'm on MacOS 12.2.1 too. Simulator 1.9.0, 1.9.1, and 1.9.2 have all been able to check for updates without crashing.
More details in case it helps narrow down why some people DO have this crash:
I'm on Apple Silicon
iCloud Private Relay enabled
Pause Simulator When Not Active DISabled
No, I didn't, and I left it where it was installed: a "PlaydateSDK" folder within a "Developer" folder (which I don't think existed before I installed this?) in my user home folder.